An Analysis of Influential Elements of Microcredit Repayment in Covid 19 Crisis: Evidence from Bangladesh

Jesmin Ara, Hossen Md Abu Sufian and Md. Abdul Wahab Sarker
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Jesmin Ara: Department of Finance and Banking, Hajee Mohammad Danesh Science and Technology University, Dinajpur, Bangladesh.
Hossen Md Abu Sufian: Mohila Bohumukhi Shikkha kendra, Balubari, Dinajpur, Bangladesh.
Md. Abdul Wahab Sarker: Department of Finance and Banking, Hajee Mohammad Danesh Science and Technology University, Dinajpur, Bangladesh.

International Journal of Science and Business, 2024, vol. 36, issue 1, 9-19

Abstract: This study investigates the status of microcredit repayment due to the COVID-19 crisis in Bangladesh. The study inspects several socioeconomic factors to discover the probability of default and to avoid delinquency regarding repayments rate. This study focuses on 194 respondents from Bangladesh and apply logistic regression model for executing the analysis. It found several influencing variables from the analysis with significant differentiation that has effects on the microcredit repayments rate. From the predictors, household yearly income in the COVID-19 pandemic was the strongest predictor that was reported as an odds ratio of 1.620. Two other independent variables that made statistically unique signiï¬ cant contributions to the model are difficulty of COVID-19 and number of loans taken by the credit holder. Microcredit Regulations Authority (MRA) and the government of Bangladesh need to implement several policies in order to drive the difficulty of the financial crisis as well as to boost up the repayments rate in crisis periods.

Keywords: Microcredit repayment; Covid-19; Financial difficulties; Socioeconomic condition; Bangladesh (search for similar items in EconPapers)
Date: 2024
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